On Solving the World’s Economic Problems by Doing Something Unfashionable

The world currently faces a number of economic problems. These include the large global economic imbalances that may prove to be unsustainable; international poverty, where projections suggest that it is unlikely that the Millennium Development Goals will be achieved; and stalled multilateral trade talks that threaten a return to more aggressive protectionism. Although very unfashionable, a new allocation of Special Drawing Rights by the IMF could help to alleviate all of these problems. Clearly, it is most unlikely that one simple policy will resolve all the world’s economic ills, but, at the same time, if the benefits from it could be substantial and the costs minimal, it is worthy of consideration.